Image Resources Nl · ASX:IMA
Image Resources Nl — Finance News Network presentation (June 2018)
37 slides from Image Resources Nl's conference presentation, Jun 19, 2018
Slide 1: Boonanarring Mineral Sands Project: Marching to Production
1 For personal use only Boonanarring Mineral Sands Project: Marching to Production Finance News Network 19 June 2018 Sydney, NSW Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statements
Forward Looking Statements 2 For personal use only This presentation has been prepared by the management of Image Resources NL ("Image”, “IMA“ or the ‘Company’) in connection with meetings with investors and potential investors and not as specific advice to any particular party or person. The inform
Slide 3: Forward Looking Statements
Forward Looking Statements 3 For personal use only All such forward-looking information and statements are based on certain assumptions and analyses made by the Company’s management in light of their experience and perception of historical trends, current conditions and expected future developments,
Slide 4: Company Description and Focus
Forward Company Looking Description Statement and Focus 4 For personal use only Image Resources NL ASX: IMA Emerging mineral sands producer Totally focused on fast-tracking the development of its 100%-owned, high-grade, zircon-rich flagship Boonanarring mineral sands project located 80km north of Pe
Slide 5: Investor Snapshot
Investor Snapshot 5 For personal use only Opportunity to invest in a company transitioning from advanced explorer to profitable miner before it realises full valuation Ø Company fully funded to positive cashflow § $50M as debt; $25M as equity Ø Project construction underway (only $52M project capita
Slide 6: Investor Snapshot
Investor Snapshot 6 For personal use only Opportunity to invest in a company transitioning from advanced explorer to profitable miner before it realises full valuation Ø Binding off-take agreement in place for 100% of production Ø Project NPV A$197 million1; IRR 104%1; <2 year payback1 § metrics do
Slide 7: Project Location
Forward ProjectLooking Location Statement 7 For personal use only q LOCATION Ø North Perth Basin in Western Australia Ø 80 km north of Perth CBD Ø Proven mineral sands address § Including majors Iluka and Tronox Ø Infrastructure rich § paved roads, power, gas pipeline water, telecommunications etc.
Slide 8: Projects Types and Locations
Projects Types and Locations 8 For personal use only Ø 1,000 km2 tenements portfolio Atlas Ore Reserves Ø 100% focus on mineral sands Probable: 9.5Mt @ 8.1% HM Ø Strandline projects (dry mining) Ø Dredge mining prospects Boonanarring Ore Reserves Proved: 9.3 Mt @ 8.6% HM Probable: 10.5Mt @ 5.9% HM
Slide 9: Boonanarring Project Comparison
Boonanarring Project Comparison 9 For personal use only High HM and Zircon grades relative to peers HM grade Zircon grade* VHM HM Grade (%) Zircon (%) avy 14.0% 25% e e H on VHM Grade Zircon % Image Resources (IMA) Boonanarring project ab l i y f alu t port 12.0% eav t all o 21.5Mt @ 8.3% HM V s M =
Slide 10: Ore Reserves
Forward Ore Reserves Looking Statement 10 For personal use only q QUALITY ORE RESERVES Ø JORC Code (2012) Compliant Ø High HM, VHM and very high zircon at Boonanarring High Grade Ore Reserves - Strand Deposits; in accordance with the JORC Code (2012) Project/Deposit Category Volume Tonnes % HM % Sli
Slide 11: Ore Reserves Comparison
Forward Ore Reserves LookingComparison Statement 11 For personal use only IMAGE X Mined-out Grade decreasing Source: TZMI; May 2017
Slide 12: Products and Prices
Products and Prices 12 For personal use only Notes: VHM assemblages and commodity prices are estimates based on Boonanarring project heavy mineral concentrate product.
Slide 13: Bankable Feasibility Study Base Assumptions
Forward Bankable Looking Feasibility Statement Study 13 For personal use only Base Assumptions Ø Start mining at Boonanarring Ø Dry, open-cut mining Ø Production rate - 500 dry tonnes per hour • 3.7M dry tonnes per year Ø Conventional gravity separation using spirals Ø Product: Heavy Mineral Concent
Slide 14: Bankable Feasibility Study Key Financial Metrics
Forward Bankable Looking Feasibility Statement Study 14 For personal use only Key Financial Metrics Original BFS* Updated BFS** Ø Pre-Tax NPV (@ 8%) A$135M A$197M Ø Pre-Tax IRR 64% 104% Ø Payback period (months) 22 16 Ø Mine life 8+ years Ø Project capital cost A$52M • includes ~$8M for land * ASX A
Slide 15: Project Capital Comparison
Forward Project Looking Capital Statement Comparison 15 For personal use only Source: TZMI; May 2017
Slide 16: Boonanarring – Production Statistics
Boonanarring – Production Statistics 16 For personal use only Note: 2023 information includes the start of production at Atlas.
Slide 17: Boonanarring – Project EBITDA
Boonanarring – Project EBITDA 17 For personal use only Boonanarring Project EBITDA Summary (AU$'000) 2018 2019 2020 2021 2022 2023 Total Revenue 8,880 132,600 186,900 97,200 127,200 77,400 630,180 Revenue/tonne HMC 475 589 584 512 578 455 551 Operating Costs Mining 22,400 43,800 40,100 39,300 40,900
Slide 18: Commodity Prices – Actual and Projected
Forward Looking Commodity PricesStatement – Actual and Projected 18 For personal use only Projected price increase prior to first production Latest price rise not included in financial metrics
Slide 19: Image Wet Concentration Plant
Forward Image Wet Looking Concentration Statement Plant 19 For personal use only
Slide 20: Site Construction Photos
Site Construction Photos 20 For personal use only Overburden stockpile Overburden removal Wet Concentration Plant construction
Slide 21: Project Development Schedule
Project Development Schedule 21 For personal use only Targeting first production 4th Quarter 2018 Simplified Boonanarring Project Construction Schedule - (high level) 2018 2019 May Mar Mar Aug Nov Dec Apr Feb Oct Feb Sep Jun Jan Jan Jul WCP & Equipment Relocation Project Construction Pre-Stripping O
Slide 22: Upside Potential
Forward Upside Looking Potential Statement 22 For personal use only Upside potential at and near Boonanarring Ø Confirmed potential to extend mine life with high grade mineralisation (ASX announcement 13 March & 26 June 2017); § Assuming mineralisation in extension area is identical to known Ore Res
Slide 23: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 23 For personal use only ASX - 13 March & 26 June 2017 New Drilling Results (Feb 2017) Ø Confirm 5.6km northern extension of Boonanarring mineralisation Ø Outstanding high grade intersections: § 8m @ 23.8% HM in IX00245 § 8m @ 21.1% HM in IX00244 and § 8m @ 16.3% HM i
Slide 24: Projects Pyramid – Strand Deposits
Forward Projects Looking Pyramid Statement – Strand Deposits 24 Mineral Resources – Accessible by Dry Open-Cut Mining For personal use only Projects ranked by combined Zircon (Zr) plus Rutile (Ru) BFS assumes min Tonnes-grades are for Mineral Resources; at Boonanarring Boonanarring and Atlas per JOR
Slide 25: Projects Pyramid – Dredge Deposits
Forward Projects Looking Pyramid Statement – Dredge Deposits 25 Mineral Resources – Accessible by Dredge Mining For personal use only Projects ranked by HM Grade Potential focus area for phase two growth strategy Positive attributes: Bidaminna • 90+%VHM; Tonnes-grades are for historic Mineral Resour
Slide 26: Potential Royalty from Tronox
Potential Royalty from Tronox 26 For personal use only Royalty agreement in place as of 2014 Ø Small cash payment (already received) Ø Sliding-scale royalty on production Avg. HM Grade Royalty 2.5% 1.25% 3.0% 2.50% 3.5% 3.75% 4.0% 5.00% Ø Indefinite production schedule Ø Potential for future arrange
Slide 27: Corporate Snapshot
Corporate Image Snapshot Corporate Snapshot 27 For personal use only Diverse and experienced Board and Management ASX Code: IMA Board of Directors Share Price: A$0.12* Bob Besley – Independent Chairman 12-Month Price Range: A$0.07– 0.17 Patrick Mutz – Managing Director Shares on Issue: 953m Chaodian
Slide 28: Transition from Explorer to Producer
Transition Contact from Explorer to Producer 28 For personal use only Generalisation of Transition from Explorer to Producer 10 9 Project Production 8 Development (realisation Discovery (feasibility 7 of full value) & Resource results; 6 Delineation Relative Value Study Period mine decision; 5 (exci
Slide 29: Use of Solar Energy
Corporate Snapshot Use of Solar Energy 29 For personal use only Heads of Agreement with Sunrise Energy Group Pty Ltd to provide 3-4 MWAC solar farm to be: Ø Constructed and operated by Sunrise Energy; Ø Located on Image owned land adjacent to Boonanarring mine site; and Ø Providing 25% of total elec
Slide 30: Contact
Contact For further information 30 For personal use only Patrick Mutz Managing Director Image Resources NL info@imageres.com.au Office: +61 8 9485 2410 Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au
Slide 31: Additional Information
Forward Looking Statement 31 For personal use only Additional Information
Slide 32: Project Funding
Project Funding 32 For personal use only Boonanarring is now fully funded to positive cashflow and construction has begun Ø Overall capital requirement: A$75 million § Includes project capital, corporate, exploration, working capital and fund raising costs Ø Equity Capital: A$25 million § A$25 milli
Slide 33: Compliance Statement
Compliance Forward Looking Statements Statement 33 For personal use only COMPLIANCE STATEMENT FOR EXPLORATION Information in this presentation that relates to Exploration Results is based on information compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining a
Slide 34: Mineral Resources – Strand Deposits 1 of 2
Mineral Forward Resources Looking Statement – Strand Deposits 34 For personal use only Strand Deposits 1 of 2 High Grade Mineral Resources - Strand Deposits; in accordance with the JORC Code (2012) @ 2.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leucoxen
Slide 35: Mineral Resources – Strand Deposits 2 of 2
Mineral Forward Resources Looking Statement – Strand Deposits 35 For personal use only Strand Deposits 2 of 2 Previously Reported Mineral Resources - Strand Deposits; in accordance with JORC Code (2004) @ 2.5% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leu
Slide 36: Mineral Resources – Dredge Deposits
Mineral ForwardResources Looking Statement – Dredge Deposits 36 For personal use only Dredge Deposits 1 of 1 Previously Reported Mineral Resources - Dredge deposits; in accordance with JORC Code (2004) @ 1.0% HM Cut-off Project/Deposit Category Volume Tonnes % HM % Slimes HM Tonnes VHM Ilmenite Leuc
Slide 37: Compliance Statement for Mineral Resources
Forward Looking Compliance Statement Statements 37 For personal use only COMPLIANCE STATEMENT FOR MINERAL RESOURCES 1. COMPLIANCE STATEMENT Boonanarring/Atlas Mineral Resources The information in this presentation that relates to the estimation of Mineral Resources is based on information compiled b
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